Does the Zoomin Groomin Franchise Agreement include a non-compete clause and no-solicitation provisions after termination?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not unfairly compete with us for a period of two (2) years after expiration or termination of this Agreement in the Territory or within twenty-five (25) miles of the boundaries of the Territory or 25 miles of any other Zoomin Groomin outlet by engaging in any Restricted Activities. This restriction applies even if you sell your Franchise Business.
C. No Solicitation
You will not, for a period of two years after expiration or termination of this Agreement, in the Territory or within 25 miles of the boundaries of your Territory, directly or indirectly solicit the patronage of any customer served by your prior Franchised Business during the last 24 months that you were a franchisee, or such shorter time as you were a franchisee, for the purpose of offering such person or entity, for a fee or charge, pet grooming or related pet products and services.
D. Disparagement
During the Restricted Period, you will avoid intentional conduct that leads any existing Client or vendor to modify their relationship to the harm of the Franchise Business.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, the Franchise Agreement includes both non-compete and no-solicitation clauses that apply after the termination or expiration of the agreement. Specifically, for a period of two years after the agreement ends, a franchisee cannot unfairly compete with Zoomin Groomin within their former territory or within 25 miles of its boundaries, or within 25 miles of any other Zoomin Groomin outlet. This restriction applies even if the franchisee sells their franchise business.
The non-compete clause prevents franchisees from engaging in any "Restricted Activities," which are defined as owning, operating, or having any interest in a competitive business that offers mobile pet grooming or related pet products and services. This means a former franchisee is restricted from starting a similar business or working for a competitor in the specified geographic area for two years.
In addition to the non-compete clause, the Zoomin Groomin agreement also includes a no-solicitation provision. For two years after the agreement ends, a franchisee is prohibited from directly or indirectly soliciting the patronage of any customer served by their prior franchised business during the last 24 months of their operation (or the entire time they were a franchisee, if shorter). This prevents a former franchisee from actively trying to take customers away from the Zoomin Groomin system.
Furthermore, during this restricted period, the franchisee must avoid any intentional conduct that could harm the Franchise Business's relationships with existing clients or vendors. These post-termination restrictions are designed to protect Zoomin Groomin's business interests and customer relationships after a franchise agreement ends.